How to test product or service concept

Concept testing is most often used to test the success of a new product or service idea before it is marketed. Potential consumers of the product or service are targeted to provide their reactions to written statements, images or graphics, or actual implementations of the basic idea for the product or service.

Concept testing is frequently a Go/No Go decision driver based on consumer appeal and purchase intent.
Concept testing and development provides the direction and guidance necessary to identify and communicate key product or service benefits, uses, packaging, advertising, sales approaches, product information, distribution, and pricing.

A variety of concept testing options is available to help companies minimize risk and maximize revenue. We will design concept testing to address your particular needs and requirements.

The following applications show the value of concept testing to companies:

– Are you reaching out to a new market segment?
– How do your core customers use and interface with the product class?
– Testing a new product concept before the initial introduction?
– Rank and select the best potential product concepts, name, USP, packaging, logo?
– Determine the optimal pricing point for alternative new product concept bundles?
– Need to make a final go/no-go decision regarding a new product concept?
– Need to test customers’ trial experiences (at home testing) to see if product or communications adjustments should be made.

Key Components of Online Concept Testing

Each of the following testing stages focuses on customer’s critical needs and produces actionable information that can drive product formulation and promotional initiatives.

– Screening is critical for any concept to be tested among potential consumers of the product or service. If, for example, we want to truly understand interest and purchase intent of a cleaning tool, this tool must be tested among people who clean their homes on a regular basis.
– Needs assessment (frequently referred as “Pain”) examines the core customer needs that may lead to acceptance of the new product or service, for purposes of understanding and segmentation, prior to the actual concept presentation to the relevant consumer group.
– Concept presentation – concept is, usually, presented to consumer in a “flyer” (or movie) type, concise format underlining its key feature and benefits.

Example of concept testing flier:

Another example of concept testing:

– Decision process assessment identifies information sources each purchaser or decision maker relies on to establish the credibility of the product, its benefits and values.
– Concept understanding and general purchase intent. The approach allows comparing purchase intent of the product (or service) to the industry benchmark for market success.
– Purchase intent and market potential at different price levels for the purposes of understanding price elasticity and volume and revenue forecasting.

Pricing question example:

Price elasticity and revenue forecast example:

– Product/service features and benefits indentifies features and benefits that are most important to customers. Features can be categorized into those which are “need to haves” vs. “nice to haves.” Customer need must be identified and prioritized for product development and advertising.
– Packaging/logo testing – each package is tested on a number of variables vs. each other and vs. the competition.